ED case was filed against Karti to ‘embarrass me,’ Chidambaram tells Madras HC

CHENNAI: With his son Karti facing repeated Enforcement Directorate (ED) summons in connection with the Aircel-Maxis money laundering case, former Union home and finance minister P Chidambaram stepped in and said the case was filed to cause “political embarrassment” to him.
“I regret to submit that the proceedings initiated against the petitioners have been undertaken in order to cause political embarrassment to me and besmirch my reputation and the reputation of the members of my family,” Chidambaram said, urging the court to quash the summons.
Justice B Rajendran, before whom lengthy arguments were advanced both by the counsel for Chidambaram and ED, reserved his orders.
The case relates to Prevention of Money Laundering Act (PMLA) violations allegedly committedly by two companies -- Advantage Strategic Consulting Private Limited and Chess Global Advisory Services Pvt Ltd, where Karti had been a director. The ED and income tax department conducted search-and-seizure operations on the business premises of Chess Global firm in Chennai last December.
It had been Centre’s stand that since the case pertained to ‘2G scam,’ the Madras high court had no jurisdiction to entertain the present case filed by Karti Chidambaram to quash the summons.
On Wednesday, making light of the approval granted by the ‘finance minister’ for a proposal from the Foreign Investment Promotion Board (FIPB), Chidambaram said: “CBI recorded my statement on December 6, 2014. All the persons who gave statements to the CBI affirmed and demonstrated that the approval was granted by FIPB and recommended to the competent authority, namely, the finance minister for his approval in accordance with the extant guidelines. The finance minister granted approval in the ordinary course of government business.”
The CBI filed chargesheet in the Aircel-Maxis case on August 28, 2014, and it had not found or reported any offence under any law in respect of the FIPB approval, Chidambaram said. The ED absolutely lacked jurisdiction under the Prevention of Money Laundering Act, 2002 since no scheduled offence exists, he said, adding that proceeds of crime also did not exist.